1) That TV is 42", and it's showing Media Center at 720p resolution.
2) I don't know. I'll need to ask my parents (since it's their house and their TV in that photo).
Also, in the Duet case, my friend and I checked into the possibility of putting the MCE remote receiver behind that black window area on the front panel, but it would have required some careful modding. Ordinarily, it's obscured by a layer of opaque plastic on the inside, so in this case's stock form you couldn't hide the MCE receiver inside.